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Biden Reviewing Ties Between the U.S. and Saudi Arabia; Food Insecurity Concerns Grow as Inflation Rises; Day Two Underway as China Plans Political Future; Palestinian Authority Prime Minister Visits Jenin; British Finance Minister to Speak on Medium-Term Fiscal Plan. Aired 4:30-5a ET

Aired October 17, 2022 - 04:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[04:30:00]

MAX FOSTER, CNN ANCHOR: The new trading day is already under way across Europe. Here is how the markets are faring so far today. They are all up. The FTSE 100 currently up despite concerns about the state of the economy and that's because we're expecting a major government update on fiscal policy mid-morning U.K. time.

U.S. President Joe Biden says it's time for the U.S. to rethink its relationship with Saudi Arabia. It comes after OPEC+ decision to cut oil production. Could see inflation in the U.S. soaring just weeks before the midterm elections. And National Security Adviser Jake Sullivan says Mr. Biden is reassessing the relationship between the two countries, quote, methodically.

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JAKE SULLIVAN, WHITE HOUSE NATIONAL SECURITY ADVISOR: I'm not going to get ahead of the president. What I will say is there is nothing imminently moving now. So, there is time for him to have those consultations to make decisions that are in the best interest of the American people. He has no plans to meet with the Crown Prince at the G-20 summit.

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FOSTER: Well, the White House wasn't happy about the recent OPEC+ decision to cut oil production by 2 million barrels a day, although gas prices in the United States are inching back up to $4 a gallon. Biden administration officials say they're not too worried about that.

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JARED BERNSTEIN, WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS: There are still 400 million barrels of oil in the strategic reserve. It Is more than half full. I think people don't quite have that capacity number in their head. We've never done a draw that's of that magnitude. And the largest draw that we've ever done that President Biden presided over in March was 180 million barrels. So, the fact is that there is capacity there to use the SPR, to deal with some of the energy shocks we're seeing.

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FOSTER: Another issue Americans are facing nationwide is food insecurity. It's a problem that gets worse as inflation keeps rising. CNN's Nadia Ramiro spent a day at a church that operates a food pantry outside Atlanta. They're now seeing thousands more cars than they used to.

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NADIA ROMERO, CNN U.S. CORRESPONDENT (voice over): Hundreds of families lined up for help, some of them, four hours before this drive-thru food pantry started at New Birth Missionary Baptist Church in a suburb of Atlanta over the weekend.

UNIDENTIFIED MALE: You've got to take care.

UNIDENTIFIED MALE: Thank you.

DR. JAMAL BRYANT, SENIOR PASTOR, NEW BIRTH MISSIONARY BAPTIST CHURCH: You have absolutely no idea how many people are suffering in silence, having no clue as to how they're going to feed and take care of their families.

ROMERO (voice-over): Every Saturday since January 2020, back then, just 30 cars per week, but now, up to 3,000 cars a week.

The pandemic and rising inflation providing a one-two punch on people's wallets.

UNIDENTIFIED MALE: It is the pandemic and everything is going up.

UNIDENTIFIED FEMALE: Double and triple. I paid 85 cents a dozen at Lidl for eggs. And now they're $3. It's crazy.

UNIDENTIFIED MALE: Really ridiculous. You know, you go in the supermarket and things get expensive.

ROMERO (voice-over): food prices more than alarming, especially for families living paycheck to paycheck. Last month, the Bureau of Labor Statistics showing just how much staple goods will cost you this year compared to 2021. Bread jumped 16 percent, milk up 17 percent, flour 23 percent more expensive, and egg prices with the most dramatic increase, up nearly 40 percent. Inflation a big talking point on the campaign trail as we near the midterm elections.

UNIDENTIFIED MALE: How to budget in a way that doesn't run away -- create runaway inflation.

SEN. RON JOHNSON (R-WI): The out of control inflation.

SEN. BERNIE SANDERS (I-VT): Inflation is a global problem.

ROMERO (voice-over): Off the campaign trail and back to the food line. Priscilla Ward and her sister, Brenda Billings getting the surprise of a lifetime. The sisters are the one-millionth family who came through the drive-thru pantry at this church since January 2020. Ward and her sister will take home healthy produce, small appliances and a $1,000 cash prize for helping the church hit this mark. Ward says she has several growing grandchildren she helps feed.

PRISCILLA WARD, FOOD PANTRY RECIPIENT: And every time they walk in the door, grandma, I'm hungry. So, I said, well, let me see what grandma might get. They always say, grandma, you always have something.

ROMERO (voice-over): For her sister, it's been a rough last few years.

BRENDA BILLINGS, FOOD PANTRY RECIPIENT: I had cancer twice, colon cancer, breast cancer. I'm a cancer survivor. And right now, God brought me through a whole lot.

ROMERO (voice-over): Tears and cheers as these two special recipients and others in line get the help they need from this church and partners like World Vision.

BRYANT: My grandmother taught me a principle that when it's family, it's not charity.

ROMERO: When it comes to inflation on the campaign trail for Republicans it's very simple. Their message is that the rising inflation issue is the blame of President Biden and Democrats. But when Democrats are asked about inflation on the campaign trail, many of them say it's a problem with supply chain issues and corporate greed.

[04:35:00]

But we know from a recent CNN poll that this is a very important issue for voters.

Nadia Romero, CNN, Atlanta.

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FOSTER: China's communist leaders and political elite have gathered for day two of the 20th Party Congress. Xi Jinping opened the event on Sunday, like he has in the past, laying out his nationalistic vision for the country's future. But this year is unlike any other. Because after ten years in power, Xi is poised to be selected for an unprecedented third term as party leader. I'm joined by Steven Jiang, CNN's Beijing's bureau chief and senior International correspondent Will Ripley, he's in Taipei, Taiwan. First of all, to Steven, just bring us up to date on the first day for people that might have missed it.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Yes, Max, you know, Xi Jinping gave that two-hour speech and the central theme is very clear that the only way to restore China's rightful place on the global stage is by restoring the Communist Party's dominance in every aspect of Chinese society. That's the more explicit part. The more implicit message Xi Jinping is the only man can do it and he has done so in the past decade of his reign.

And of course, from their perspective, he said all the right things, for example, promising to renew economic growth by focusing on innovation. But critics have long argued innovation has been stifled under him precisely because of his government's sweeping crackdown on the private sector, especially on the tech industry. And indeed, the sharp economic slowdown in large part due to his insistence of a strict zero-COVID policy even with growing evidence that it's not working and even though it's generating growing public frustration or even resentment towards this policy.

But of course, if you listen carefully throughout his speech, he used one-term time and again. That is struggle or fight. He talked about fighting COVID, fighting corruption, fighting separatists in Hong Kong and Taiwan and without naming the United States, fighting unilateralism and hegemony. So that's also a very clear indication he's not going to back down from any of his hardline policies and positions including on zero-COVID -- Max.

FOSTER: Will, what are you looking for next?

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, obviously, you know, Taiwan continues to do what they've always done here which is to issue rebuttals when, you know, the communist rulers in Beijing, whether it be Xi Jinping or others make the claim that they feel is inaccurate that this self-governing democracy is actually under the mainland's control and will eventually be in their words reunified.

People here really take issue with the word reunify because they say reunifying would mean they were ever unified. And in reality, for more than 70 years since the civil war ended in China, they've had their own government here. And it has over the years evolved into a hard won democracy that people fought, they died for. And now people vote the leaders of this island and more than 23 million people.

And even though Beijing says that the leaders are not legitimate and that one country two systems is the model that must happen here, it continuously is rejected by the Taiwanese public and by all of the major political parties here even the traditionally pro-China KMT doesn't have one country two systems on their political agenda currently. They used to, you know, think that eventually there might be some sort of, you know, eventual unification with the mainland. They don't even feel that way anymore. That's how much the landscape here in Taiwan has changed.

But that room in Beijing with all the pomp and the ceremony and the very carefully controlled scripted praise of Xi Jinping and his communist compatriots that doesn't ring true here. People don't identify with those people as their leaders. Their leaders are the ones they choose. And they say they're going to continue to make choices about their future. And that's why Taiwan continues to bolster its national defenses, continues to bolster asymmetric, you know, defenses because they know in terms of sheer size they can't compete against a mammoth military like China's, Max.

But this is an island. Island are difficult to invade. They know that here in Taiwan and they're trying to adjust their military strategy. Learning lessons what happened in Ukraine and what is still happening in Ukraine to try to potentially have to put those into action in a different model, but same, you know, same concept here. Of course, nobody wants that to happen, Max, but people are not living in a fantasy world. They know that is a distinct possibility especially given the rhetoric out of Beijing from the Chinese leader.

FOSTER: All right, Will in Taipei, Steven in Beijing, thank you both very much indeed. We'll continue to watch.

Still to come, Palestinians bury one of their own after a week of clashes with Israel. We're live in Jerusalem with the latest on that.

[04:40:00

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FOSTER: The Palestinian Authority Prime Minister was in the West Bank city of Jenin on Sunday meeting with families of several militants killed in clashes with Israeli security forces in recent months. It comes amid the deadliest year so far for both the Israelis and Palestinians since 2015. CNN's Hadas Gold is in Jerusalem with more. Why this uptick in tensions?

HADAS GOLD, CNN CORRESPONDENT: Well, Max, for weeks, really months, we have been reporting on the deteriorating security situation in the West Bank, and then last week up until really Friday we saw that situation sort of steep into Jerusalem where there were nightly clashes, especially in east Jerusalem for several days.

And in some of those neighborhoods and some of the areas that had been relatively quiet over the past year, and these clashes reached a level that we really haven't seen since last year. And keep in mind, it was tensions in Jerusalem that helped spark the 11 day war last year between the Israeli military and Hamas in Gaza.

But over the last few days Jerusalem has been relatively quiet in compared to last week. Now, in terms of the West Bank, though, there have been nearly daily Israeli military raids. The Israeli military says it's targeting militants and their weapons, but as you've noted, this escalation in activities, this escalation in violence including in Palestinian attacks have made it the deadliest year for both Israelis and Palestinians since 2015 and we're only in October. There's a few months left in the year. And there are concerns this situation will only just further deteriorate and spiral and escalate out of control.

Now, what was very unusual yesterday was to see the Palestinian Authority Prime Minister Mohammad Shtayyeh in the Jenin refugee camp. Jenin is a town and a refugee camp in the northern West Bank that's really seen as a militant stronghold. Where the Palestinian Authority has very little influence or control. So, it's very unusual to see the Palestinian Authority Prime Minister there.

And he was speaking alongside the families of Palestinians killed by Israeli forces including militants. Including I should note, the father of the man who carried out a shooting attack at a crowded Tel Aviv bar in April killing three people.

[04:45:00]

And the father of this attacker is allegedly also wanted by the Israeli military.

Now why was the Palestinian Authority Prime Minister in Jenin? Well, I think you can see it was part of them trying to shore up their support. The Palestinian Authority has become very, very unpopular in recent years for many young Palestinians. They don't see Palestinian Authority representing them and doing their jobs to essentially help shake off what they see as the Israeli occupation.

I think it's also seen as sort of potentially a message to Israel. And in his speech, Mohammad Shtayyeh talked about how he claimed the Israeli military is trying to use -- he said essentially Palestinian blood for their own electoral gains because Israelis are going to the elections on November 1st.

From the Israeli side, the Israeli Prime Minister Yair Lapid according to Israeli military reports held a security assessment meeting to talk about potentially carrying out a greater military operation against these militant groups in the West Bank -- Max.

FOSTER: OK, Hadas in Jerusalem. Thank you.

Here the British Prime Minister is undergoing pressure to show that the economy is in good hands. Liz Truss spoke with the British finance minister over the weekend about the government's fiscal plans. Jeremy Hunt tells the BBC the government will have to make very difficult decisions as it aims to reassure the markets. Could learn about the medium-term fiscal plan in the coming hours as well. Hunt is expected to make a statement and address the House of Commons later today. He met with the governor at the Bank of England and the head of the debt management office on Sunday.

Bianca is with us. We should make the point that this has already been brought forward this budget update once and been brought forward again which shows what level of crisis we're at.

BIANCA NOBILO, CNN CORRESPONDENT: Clearly Jeremy Hunt wants to keep communicating with the markets. One of the main criticisms that people had and the markets in particular had about the way the Prime Minister and the previous chancellor were handling things is that they weren't informed. There wasn't enough briefing about what they were going to do. So, that's one of the messages that Jeremy Hunt wants to send today.

It is perhaps unusual that he's starting with a statement to the media and then he's going to the House of Commons when finance ministers are discussing things like tax. Very strange for them not to go to the House of Commons first. But I think he's got a bit of latitude here. And speaking of latitude that he has, he hasn't moved in to Downing Street yet because, of course, the chancellor lives there, too, next to the Prime Minister.

But when he does, there will be one powerful person at Downing Street but it definitely won't be the Prime Minister. Because MPs are calling Jeremy Hunt the de facto Prime Minister. All the power is with him. And this push me, pull you, between Prime Minister and chancellor is quite natural. We always see that, but never like this. I mean, it is what he says goes. And he's obviously taken this role on the condition that he's doing it on his own terms.

FOSTER: Which raises the question what is the point of Liz Truss as Prime Minister if she's got no authority and power? So presumably that process is being discussed in Westminster as well.

NOBILO: It is relentlessly. And not just that she doesn't have credibility and power, the fact she built her only platform, her only mandate on how she would handle the economy and these economic principles of libertarianism of having a small estate, less redistribution, low taxes. You can't tax your way to growth. So, the main tenants that she stood on are now all being undermined and completely dispensed with if what we have been briefed comes to be by the new chancellor.

So indeed, what is the point of the Prime Minister if all the things she centrally believed and all promises that she made to the Conservative Party are now not going to be executed because they've been shown to destabilize the markets and they're not successful.

Which is why we have these constant questions and rumblings in Westminster that are continuing about how Liz Truss could be ousted. We had three MPs come forward over the weekend and saying -- within the Conservative Party and saying she has to go. If that momentum increases, we know how this goes. We have seen it quite recently. She's going to be in even less tenable position.

FOSTER: OK, so it's just over an hour we're expecting to here from Jeremy Hunt. We'll bring that to you live. Thank you, Bianca.

Across the U.K., some people are reacting to the economic conditions supporters of plant-based foods dumped containers of milk the middle of grocery stores. The Animal Rebellion group says they're protesting government's lack of support for farmers who transitioned to a plant based future. Elsewhere activists from the group Just Stop Oil got colorful with their protest smashing orange paint over the front of a luxury car showroom, they're demanding the government halt all new oil and gas licenses in the North Sea.

[04:50:00]

Still to come, an epic playoff, rematch between two of the NFL best. We'll have that and more from Sunday's action next.

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FOSTER: Americans can now buy hearing aids without a prescription after the U.S. Food and Drug Administration approved the change, according to some physicians. About 90 percent of Americans with hearing loss could benefit from the over the counter hearing aids. And the new rule might usher in options that could be cheaper as well.

In the NFL, the Buffalo Bills got some revenge against the Kansas City Chiefs in a highly-anticipated rematch from last year's playoffs. Bills quarterback Josh Allen threw for 329 yards and 3 touchdowns, including this one to Dawson Knox with just over a minute left as Buffalo rallied for the road victory, 24-20, Buffalo. Seen the last two post season runs come to an end with losses to the Chiefs.

The New York Jets continue their hot start to the season. This time with a convincing win over the Packers in Green Bay. New York's star Breece Hall ran for 116 yards including this 34-yard touchdown. Helping the jets to a 27-10 victory. At 4-2, the Jets are off to their best six-game start since 2015 with three of their wins coming on the road so far.

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And the Atlanta Falcons are red hot as well against San Francisco on Sunday. Falcons quarterback Marcus Mariota was nearly perfect completing 13 of 14 passes, throwing two touchdowns and running for another. Atlanta wins it, 28-14 and their third victory in their last four games.

In the English Premier League, Liverpool handed defending champs Man City their first loss of the season and earned a much-needed win. Man City was the only unbeaten team left in the league when they met Liverpool on Sunday. The match was tied at nil for most of the game until Liverpool's Mo Salah scored in the 76th minute and Reds held off Man City to win, 1-0.

Now next time you look up at the stars, you probably won't see lucy in the sky with diamonds, but she is there. NASA has launch a mission named Lucy in part as a tribute to the Beatles and even has a diamond on board for use in certain experiments. But this mission could have been named a long and winding road as well. It's scheduled to last 12 years and Lucy's never coming home either. Lucy will be the first mission to investigate the trojan asteroid swarms around Jupiter and scientists hope it will give a better understanding of the evolution of our solar system.

Thanks for joining me here on CNN NEWSROOM. I'm Max Foster in London. "EARLY START" with Christine Romans is up next here on CNN.

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